Is artificial intelligence a financial bottomless pit? Investors have begun to ask themselves this question, but in the absence of a clear answer, they have started buying shares again. Not all shares, mind you. Yesterday saw two significant declines in the US AI sector, but they did not derail the upturn, with the S&P 500 retaining 0.2% of its gains, while the Dow Jones gained 1.2% (and set a new record). The Nasdaq 100 was nevertheless penalised (-0.3%) by the 3% decline in Nvidia and the 16% plunge in CoreWeave. Nvidia lost ground after Softbank exited its capital. The ubiquitous Japanese technology investment company took its profits. Not out of mistrust of AI, it promised, but to see if the grass is greener elsewhere in the sector. Softbank is recouping $5.8 billion in the deal. As for CoreWeave, the star of the AI cloud, I was surprised yesterday that its warning only caused a 6% drop in after-hours trading. The stock finally took a hit more in line with sector volatility: -16.3% at the end of the day.

The most surprising thing is that these two negative signals had little effect on the rest of the market. Some of the stocks bearing the AI label suffered, but there were still gains in the rest of the technology sector, particularly among the ‘veterans’ Apple, Microsoft, Alphabet and Amazon. The sharp rise in the healthcare sector also helped, it must be said. In Europe, we preferred to continue celebrating the end of the US shutdown in style. The Stoxx Europe 600 gained 1.3% after rising 1.4% the previous day. The result? A new record for the broad European index, at 580 points, despite the decline in the defence sector, which is the main driver of performance this year along with banks.

Records are very much in vogue on the markets at the moment. Let's put aside Wall Street's peaks for a moment to take a look at three other markets. First, London, where the Footsie broke new ground, closing at 9,899 points. The symbolic 10,000-point mark is just 1% away. The British market has gained 21% this year, helped by its mining companies (notably Fresnillo, a gold and silver specialist), its defence manufacturers, its financial institutions and its pharmaceutical star, AstraZeneca, which has entered the top 5 European capitalisations.

The second market on its way to record highs is Italy. Yesterday, the FTSE MIB smashed through the 44,000-point ceiling, bringing its 2025 gains to 30%. But this is not a peak. In fact, the Milan stock exchange sailed even higher during the internet bubble (nearly 49,000 points one evening in March 2000). Yesterday's level is nevertheless symbolic, as it is the first time that the FTSE MIB has exceeded its level of 18 May 2007, just before the subprime crisis, which was its peak over the last 25 years. The recipe for success in 2025? Many banking stocks are rising sharply, along with a few industrial stocks and some utility companies that are back in favour.

The third very hot market is South Korea. And here, it is truly astonishing: +71% for the KOSPI, the main local index, in 2025. So much so that the authorities no longer know what to do to cool the enthusiasm of local investors… while preparing favourable reforms. The Korean overheating is also linked to the excellent form of its conglomerates, notably Samsung Electronics, which was said to be out of the running in the AI race but whose share price has doubled this year.

In short, the United States is not the only player in the stock market this year. And while France's CAC 40 is lagging a little behind (up 10.5% amid political turmoil, nonetheless), Germany's DAX is on a par with the Nasdaq this year (+21%). This is without the adverse currency effect that halved the performance of ETFs exposed to Wall Street, as we like to point out regularly.

Let's talk a little about the United States anyway. There is much speculation about the Fed's intentions ahead of the central bank's last meeting of the year on 9 and 10 December. The market is still split, with two-thirds in favour of a rate cut and one-third in favour of maintaining the status quo (65.6% versus 34.4% this morning, according to the FedWatch tool). Last night, the Wall Street Journal published an article on the major internal disagreements that reportedly exist within the Board of Governors on the course of action to be taken. The imminent arrival of the batch of statistics blocked by the shutdown should make it possible to refine forecasts, at least that is what financiers are hoping. Indeed, the latest figures published are rather contradictory and have not really dispelled the prevailing fog.

In the Asia-Pacific markets, only Australia and mainland China lost some ground at the end of the day. Markets rose in Japan (+0.4%, with the TOPIX up more than 1% to a record high), Hong Kong (+0.7%), India (+0.8%) and South Korea (+1.1%). Leading indicators also rose in Europe and the United States.

Today's economic highlights:

On today's agenda: the harmonized CPI of the European Union and the CPI in Germany. See the full calendar here.

  • GBP / USD: US$1.31
  • Gold: US$4,118.19
  • Crude Oil (BRENT): US$64.89
  • United States 10 years: 4.09%
  • BITCOIN: US$103,550

In corporate news:

  • Forterra reaffirmed its full-year guidance with a 16% increase in year-to-date revenue, driven by strong demand for new builds.
  • Marks & Spencer is overhauling its supply chain to boost online non-food sales and enhance profit margins.
  • Nichols appointed Matthew Rothwell as the new CFO and company secretary.
  • ISS secured a significant contract with a UK government department, expanding its public sector involvement.
  • LVMH acquired a minority stake in Swiss watchmaker La Joux-Perret to boost production and innovation in its Watches Division.
  • RWE exceeded nine-month profit expectations due to the sale of a British data centre project, while reaffirming its full-year outlook.
  • A2A plans to invest EUR 23 billion in energy transition and circular economy by 2035, despite a decline in nine-month core profits.
  • SKF saw a significant rise in the Stockholm Stock Exchange, with analysts adjusting price targets amid strong earnings reports.
  • SBB sold its real estate portfolio to PPI for 32 billion SEK, enhancing its financial stability.
  • Yubico reported strong earnings and improved EBIT margins in Q3 2025, despite a decline in order volume and revenue.
  • ACG Metals successfully covered its capital increase through an ABO, offering shares at GBP 10.80 each.
  • Electrolux Professional AB acquired the assets of Royal Range, a U.S.-based commercial kitchen equipment company.
  • Finning International Inc. experienced strong Q3 revenue and earnings in 2025, driven by mining sector activity and increased equipment sales.
  • CCL Industries Inc. surpassed expectations in Q3 sales and EPS, fueled by strong performance in its CCL, Checkpoint, and Innovia segments.
  • BILL Holdings is exploring a potential sale, working with financial advisers to solicit buyer interest.
  • Centerspace's board is reviewing strategic alternatives, including a potential sale or merger.

See more news from UK listed companies here

Analyst Recommendations:

  • Vodafone Group Plc: DZ Bank AG Research maintains its buy recommendation and raises the target price from GBP 1 to GBP 1.20.
  • Anglo American Plc: DZ Bank AG Research maintains its hold recommendation and raises the target price from GBP 25 to GBP 29.
  • Astrazeneca Plc: Berenberg maintains its buy recommendation and reduces the target price from USD 97 to USD 95.
  • Games Workshop Group Plc: Jefferies maintains its buy recommendation and raises the target price from GBX 11850 to GBX 18300.
  • Mitie Group Plc: Goldman Sachs initiates coverage with a buy rating and a target price of GBX 230.
  • Marks & Spencer Group Plc: BNP Paribas maintains its outperform recommendation and reduces the target price from USD 11.60 to USD 11.50.
  • Shell Plc: Zacks maintains its neutral recommendation and raises the target price from USD 81 to USD 83.
  • Victrex Plc: Barclays downgrades to market weight from overweight and reduces the target price from GBP 10.80 to GBP 6.60.
  • Watches Of Switzerland Group Plc: Goldman Sachs maintains its buy recommendation and raises the target price from GBX 530 to GBX 570.